Gold and Silver Shake Off Stronger U.S. Dollar

On Monday, gold (NYSEARCA:GLD) futures for December delivery increased $8.00 to settle at $1,683.20 per ounce, while silver (NYSEARCA:SLV) jumped 27 cents to close at $31.13.

Both precious metals bounced higher, despite a stronger U.S. dollar on more eurozone fears. The European Central Bank is reviewing its actions on whether or not it treated Spanish government debt too generously in regards to collateral for loans.

The WSJ reports, “The issue involves about 80 billion euros in Spanish Treasury bills the ECB accepted as collateral for its loans. The ECB applies different discounts, or haircuts, to collateral based on the quality of the asset being posted. The Treasury bills under question were given the highest collateral rating, but Welt am Sonntag’s research suggests many of the securities should have been given a lower rating, meaning more bills would have needed to be posted to obtain the same amount of ECB credit.”